Monolithic Power Systems Inc (MPWR)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,821,070	1,794,150	1,207,800	844,452	627,921
Total assets	US$ in thousands	2,434,350	2,058,880	1,585,820	1,208,490	956,375
Total asset turnover		0.75	0.87	0.76	0.70	0.66

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,821,070K ÷ $2,434,350K
= 0.75

Monolithic Power System Inc's total asset turnover ratio has fluctuated over the past five years. The ratio was 0.75 in 2023, indicating that the company generated $0.75 in revenue for every $1 of total assets. This represents a decrease from the previous year, when the ratio was 0.87. The downward trend suggests a decrease in efficiency in utilizing its assets to generate sales.

Comparing the latest ratio to 2021 and 2020, Monolithic Power System Inc's total asset turnover improved slightly, as the ratios were 0.76 and 0.70 respectively. This indicates that the company has been able to generate more revenue relative to its total assets compared to those years. Additionally, the current ratio is significantly higher than in 2019, when it stood at 0.66, showing an overall improvement in asset utilization efficiency over the past five years.

Overall, while there has been some variability, Monolithic Power System Inc has shown a general improvement in its total asset turnover ratio, indicating enhanced effectiveness in generating sales relative to its total assets.